Back Testing with Cycle Trends Live


issy resizedBack Testing a currency or share is done for the following reasons:

Firstly it gives you the ability to test your analysis of a share or currency by viewing an historical chart exactly as it would have displayed at an earlier date and/or time, disregarding any price data after that point in time.

This is done by going to a previous peak or low, cutting off the price at that point and seeing if the cycle forecast was reasonably accurate at that point.

Then by scrolling forward (See method below) you can watch the progress of the cycle and especially the Trendic indicators as the currency or share moves forward.

Not only is this a method for establishing whether a share or currency is cycle friendly but it is also an excellent way  to study the indicators and their techniques .

For example we recommend the use of  Trendic speeds, 55 and 36 and sometimes 21, and in going forward you can see how the Trendics move from the positive to the negative zones or vice versa as the price of the share or currency reaches turning points. This applies to the MACD indicator as well.

 

BackTesting

 

Technique

 

You can use the Scroll Bar or the Date/Time Selector to scroll back to an earlier date and/or time on the chart. The Future portion of any Cycle Indicator will not be displayed when you scroll back as that portion of the chart is a continuation of the latest data point which will no longer be visible.

The button on the Chart Tools toolbar to Start Back Testing will be enabled as soon as you scroll back to any earlier date/time. Clicking this button (or pressing the Enter key) will put the chart into Back Testing Mode which will display the chart exactly as it would have displayed at that point in time. All price data after that point in time is disregarded when plotting any indicators and the Future portion of any Cycle Indicator will only be based on the historical data up to that point in time.

Once the chart is in Back Testing Mode the other Back Test buttons will be enabled. These allow you to Step Forward in time, Replay the future data points after that point in time, or to Stop Back Testing and return to the present.

Clicking the Step Forward button will advance the chart one time period and display the chart exactly as it would have displayed at that point in time. You can continue to press this button to continue stepping forward one time period until you return to the present time period and automatically exit the Back Testing Mode.

Clicking the Replay button will automatically step forward one time period every 2 seconds until you return to the present time period and automatically exit the Back Testing Mode. The Replay button will change to a Pause button while replaying to allow you to pause the replay at any point.

While in Back Testing Mode you can scroll back to another earlier date/time and click the Start Back Testing button to back test that point in time or you can stop back testing and return to the present by clicking the Stop Back Testing button (or pressing the Escape key).